Oil Prices Hit All-Time High
The oil cartel blamed Bush administration of "mismanagement."
March 5, 2008— -- VIENNA, Austria (AP) -- OPEC on Wednesday accused the U.S. of economic "mismanagement" that it said is pushing oil prices to record highs, rebuffing calls to boost output and laying blame at the feet of the Bush administration.
Oil prices surged past $104 a barrel for the first time after the OPEC announcement and the release of a U.S. government report showing a surprise drop in crude oil stockpiles.
The 13-nation Organization of Petroleum Exporting Countries said it would maintain current production levels because crude supplies are plentiful and demand is expected to weaken in the second quarter.
OPEC President Chakib Khelil told reporters the global market is being affected by what he called "the mismanagement of the U.S. economy," and that America's problems were a key factor in the cartel's decision to hold off on any action.
"If the prices are high, definitely they are not due to a lack of crude. They are due to what's happening in the U.S.," Khelil said. "There is sufficient supply. There's plenty of oil there."
Khelil's comments came one day after U.S. President George W. Bush lashed out at the organization, warning Tuesday: "I think it's a mistake to have your biggest customers' economies slowing down as a result of higher energy prices."
White House spokesman Dana Perino said Wednesday that Bush was "disappointed" OPEC didn't do more to rein in prices, which some say are pushing the U.S. economy into recession.
Although OPEC opted not to intervene, it did pledge to maintain "constant vigilance" over the market.
Khelil said he and OPEC's secretary-general were authorized to call an extraordinary meeting or hold phone consultations "at any time, depending on the pressures on the market" -- an apparent gesture to ease global economic jitters.
There had been some speculation that OPEC might actually cut production, but Khelil said that was not discussed at Wednesday's meeting. He said OPEC had no plans to meet again before its next scheduled conference in September.
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